Dynagas LNG Partners (DLNG) Q4 2023 earnings summary

Executive summary

• Q4 net income was $10.462m, Adjusted EBITDA $27.399m and utilization 100%; FY2023 net income was $35.872m, Adjusted EBITDA $94.362m and utilization 97.8%.

• Six LNG carriers were employed on long-term charters, with 6.9 years of average remaining term and $1.11bn estimated contract backlog as of March 28, 2024.

Financial highlights

• FY2023 voyage revenue rose to $148.9m from $131.7m; operating income was $64.7m versus $45.3m, while net income declined to $35.872m from $54.0m.

• Q4 revenue increased 5.4% YoY to $37.0m; net income was $10.462m, down 9.5% YoY, with basic and diluted EPS of $0.21.

• Q4 Adjusted Net Income was $10.305m, adjusted EPS $0.20 and Adjusted EBITDA $27.399m versus $23.627m; FY Adjusted Net Income was $25.799m and Adjusted EBITDA $94.362m versus $89.503m.

• Including the $6.4m realized interest-rate-swap gain, Q4 Adjusted Net Income was $16.7m and earnings per common unit was $0.37.

• FY2023 operating cash flow was $64.4m versus $57.3m; Q4 cash from operations was $20.2m, up 50.7% YoY.

Outlook and guidance

• Contracted time-charter coverage was 100% of estimated Available Days for 2024 and 2025, 99% for 2026, and 100% for 2027; no contractual vessel availability was expected until 2028, barring unforeseen events.

• Estimated contract backlog was $1.11bn as of March 28, 2024, with 6.9 years of average remaining term.

• Lease financing of up to $345m was expected to close in Q2 2024, subject to definitive documentation and customary conditions; counterparty credit approval had been received.